Economy Thailand and EU Advance Free Trade Agreement Talks, Focus on Sustainability and SME Support

[Georgealbert]

 

Picture courtesy of InsideThailand.

 

The Ministry of Commerce has announced significant progress in the sixth round of negotiations for the Thailand-European Union Free Trade Agreement (FTA), which took place in Bangkok from 23 to 27 June 2025.

 

Commerce Minister Phichai Naripthaphan revealed that the talks, hosted by Thailand, saw fruitful discussions and led to preliminary agreements on three key chapters:

 

1. Trade and Sustainable Development (TSD) – Focused on enhancing standards related to the environment, labour, and social issues connected to trade, aligning with global trends and the European Green Deal.

 

2. Small and Medium Enterprises (SMEs) – Aimed at improving access to regulatory and trade-related information for SMEs to help them better utilise opportunities from the FTA.

 

3. Technical Barriers to Trade (TBT) – Designed to streamline trade by reducing unnecessary regulatory obstacles and facilitating smoother market access.

 

Negotiators also discussed significant areas such as market access for goods, services and investment. Both sides agreed on a clear roadmap for work between now and the next round of negotiations, which is scheduled to be held in Brussels from 29 September to 3 October 2025.

 

Minister Phichai expressed satisfaction with the progress made, especially on the TSD chapter, a topic of mutual priority for both Thailand and the EU. He noted that the agreement supports Thailand’s commitment to raising environmental, labour and social standards not as trade barriers, but as essential elements of sustainable development.

 

The talks also reinforced the shared goal of empowering SMEs by improving transparency and information accessibility. The two parties underscored the importance of building a reliable, predictable and long-term trade partnership, particularly against the backdrop of current geopolitical and economic uncertainties.

 

This latest progress follows earlier discussions in June between Minister Phichai and Mr Maroš Šefčovič, EU Commissioner for Trade and Economic Security, during the OECD Ministerial Council Meeting in Paris. Both sides reaffirmed their intention to fast-track the FTA talks, in line with the Thai government’s trade expansion and foreign investment attraction policies.

 

Prime Minister Paetongtarn Shinawatra has prioritised securing new export markets and increasing foreign direct investment as key elements of economic growth strategy.

 

From January to May 2025, the EU ranked as Thailand’s fourth-largest trading partner after China, the United States, and Japan. Bilateral trade reached USD 18.09 billion, a year-on-year increase of 0.57%. Thai exports to the EU rose by 8.86% to USD 10.7 billion, while imports from the EU fell by 9.4% to USD 7.4 billion, resulting in a trade surplus of over USD 3.3 billion in Thailand’s favour.

 

The next round of FTA negotiations in Brussels is expected to build on this momentum and further solidify the Thailand-EU trade partnership.

 

 

  Adapted by Asean Now from InsideThailand 2025-06-29